Guarantees of the State of Mecklenburg-Vorpommern

The guarantee guideline of the State of Mecklenburg-Vorpommern is aimed at commercial enterprises with a business establishment in the state. The aim is to support the creation and securing of sustainably competitive structures and to enable economically beneficial measures.

The State of Mecklenburg-Vorpommern provides guarantees to secure loans and aval credits that are needed for investments, working capital, or to finance a succession arrangement. The funding is provided as a default guarantee and is intended to facilitate the financing of measures that are economically beneficial.

The State of Mecklenburg-Vorpommern provides default guarantees that can cover up to 80 percent of the loan amount. The terms of the guarantees are based on the loan term and vary depending on the financing purpose. In addition, processing and ongoing guarantee fees apply.

Several conditions must be met for the state to assume a guarantee, including the principle of subsidiarity and a positive repayment prognosis. Applicants must also ensure that the project is economically viable and economically beneficial. EU state aid law plays a central role in the approval.

The application for a state guarantee must be submitted in a timely manner before the start of financing via the lender to PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft. The process includes a review by the mandated agent and the state, with the possibility of a preliminary review procedure.

The state guarantee Mecklenburg-Vorpommern is based on the Guideline for the Assumption of Guarantees by the State of Mecklenburg-Vorpommern (Guarantee Guideline) and the relevant EU state aid regulations. There is no legal entitlement to the assumption of a guarantee; the decision is at the discretion of the state.